New Delhi: Rumors of big layoffs have been in the air on Twitter ever since Elon Musk took over last week, they were confirmed via a memorandum Thursday. But tech companies are seeing a decline in hiring since the beginning of the year. recession,
In its first memo since the acquisition, Elon said that “in an effort to get Twitter on a healthier path,” the company will reduce its global workforce starting Friday.
The layoffs began with the microblogging site facing problems around the world where users were unable to access their feed. The outage detection website downdetector.com also reported that there was a spike in Twitter user complaints,
Tech companies have been laying off employees since the beginning of the year and memos have been circulated about the hiring pause at large companies.
“At this stage, it feels like a re-evaluation of talent and open positions,” said Jaideep Kewalramani, head of employability business and COO of learning solutions firm TeamLease EdTech.
“Despite a deep correction in stock prices on the back of a rate hike, Wall Street analysts remain bullish on the long-term prospects of the tech sector.”
Kewalramani also predicted that, although the Indian tech sector would experience a slowdown, it would not “decline” outright.
“Indian companies will experience some slowdown in some sectors, but certainly not a decline,” he said. “Technical portfolios will rebalance themselves. There will be a brief lull in outsourcing while global customers determine their commitments before taking on again. ,
Read also: Parag Agarwal may be out, but now there’s another Indian helping Elon Musk run Twitter
a global trend
Silicon Valley has announced freezes and layoffs across the board.
In June, Meta warned its employees about “economic trends” that would push “lean” teams. Comment From Chief Product Officer Chris Cox.
Although no layoffs have been confirmed, there have been reports About 15 percent of Facebook’s employees, or about 12,000 employees, were laid off.
The rumors started when Mark Zuckerberg, CEO of Meta repeated Banned hiring and said they would “restructure teams” in weekly Q&A sessions at the company.
300 employees lost their jobs in the second half of June Netflix Due to the decline in the number of customers. He had also cut 150 jobs a month ago.
Other tech giants haven’t indicated layoffs, but have confirmed a slowdown in recruitment. Recently, tech giant Amazon shared Comment Regarding your decision to “balance your hiring and investment” for the next few months with your employees.
“With the economy in a precarious place and how many people we’ve hired over the years, Andy” [Andy Jassy, CEO] And Steam This week we decided to stop adding new incremental employees to our corporate workforce,” Beth Galetti, Amazon Senior Vice President of People Experience and Technology, said in a note dated Nov. 2.
One of the main reasons cited was the “macroeconomic environment” the company wants to create by restricting the onboarding of its employees.
Apple fired from job About 100 contract-based recruiters in August. This was a precursor to its announcement last month that it would Embrace a Recruitment Slowdown Outside the research and development team until next year.
Google CEO Sundar Pichai in July this year memorandum Informing its employees that the company will cut costs and slow its hiring operations for the rest of the year.
“The uncertain global economic outlook has been top of mind. Like all companies, we are not immune from economic adversities. Pichai wrote, “Because of the hiring progress achieved so far this year, we will slow the hiring momentum for the rest of the year, while still supporting our most important opportunities.”
Several other smaller companies have announced job cutsThe latest rideshare app Lyft and online payments firm Stripe that announced layoffs on Thursday.
Cryptocurrency firm Coinbase faced layoffs in June this year. Coinbase CEO Brian Armstrong sent Comment Saying to all employees that he will reduce by about 18 percent due to the ongoing economic slowdown.
Their chief product officer Surojit Chatterjee stepped down on Thursday. decision, that Toldwas taken to “catch up” [his] Breath”.
Read also: India must gear up to face the US recession. Inflation control comes at the cost of growth
‘Expected recession’
A common thread in all these messages by the top leadership is a sign of preparation for an impending recession.
“Globally, big tech companies are feeling the heat of the recession and preparing for an anticipated recession,” Kewalramani said.
He explained that as a result he has held onto new recruits and is not trying to control his regular job leaving.
“Besides, non-performers, bench staff and new initiatives are being scrutinised. The concept of talent hoarding as a competitive advantage is no longer valid in this economic climate,” he said.
Twitter take-off saga
Since Friday morning, several employees tweeted how they were forcefully logged out of all their work databases and communication channels without prior notice. Fired workers are using hashtags #LoveWhereYouworked To document their experience.
Although the immediate nature of the layoffs may come as a surprise to some, Musk did not intend to cut Twitter’s workforce. news, As of now, it is not clear how many have been laid off.
Fired Twitter employees have now opened a forum on messaging platform Signal where they can seek and provide help navigating their conversations with management. a “take-off guide” was also released where they talked about the ways in which one can store their data and where to set the bar when it comes to the company’s expectations of being treated “fairly”.
Twitter layoffs started when Moscow removed The entire top management team including CEO Parag Agarwal.
(Edited by Therese Sudeep)
Read also: How RBI’s inflation targeting regime has had a stabilizing effect on price rise in India